Lee, Seungho, Switzer, Lorne N. and Wang, Jun (2018) Risk, culture and investor behavior in small (but notorious) Eurozone countries. Journal of International Financial Markets, Institutions and Money . (In Press)
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Abstract
This research investigates how culture moderates the impact of risk on individual investors’ trading behavior in nine Eurozone countries, where risk is measured by conventional and extreme risk. These markets were particularly affected by the global financial crisis, the subsequent European banking crisis, and the European sovereign debt crisis. Using mutual fund flows as proxy of investors’ trading behavior, our evidence indicates that country culture variable significantly affects investor’ trading responsiveness to risk. Specifically, the impact of risk on fund flows is significantly positive and is larger in scale in countries with individualist cultures.
| Divisions: | Concordia University > John Molson School of Business > Finance |
|---|---|
| Item Type: | Article |
| Refereed: | Yes |
| Authors: | Lee, Seungho and Switzer, Lorne N. and Wang, Jun |
| Journal or Publication: | Journal of International Financial Markets, Institutions and Money |
| Date: | 28 December 2018 |
| Funders: |
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| Digital Object Identifier (DOI): | 10.1016/j.intfin.2018.12.010 |
| Keywords: | Volatility; Extreme risk; Small investor behavior; Country culture |
| ID Code: | 984895 |
| Deposited By: | Michael Biron |
| Deposited On: | 16 Jan 2019 18:54 |
| Last Modified: | 22 Dec 2020 02:00 |
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